Abingdon Health Shares Fall on Going Concern Warning
18 November 2021 - 10:00PM
Dow Jones News
By Michael Susin
Abingdon Health PLC shares fell as much as 26% in early trade
Thursday after the group warned over its ability to continue as a
going concern due to the continuing dispute with the U.K. Secretary
of State for Health and Social Care over unpaid monies for Covid-19
test kits.
The diagnostics company said it is currently owed 8.9 million
pounds ($12 million) by the DHSC and can't see any legal grounds
why the money hasn't been paid.
It said the company and DHSC have held two meetings to try and
resolve the issue and have reached a preliminary agreement that
could lead to it receiving the money and resolve all outstanding
disputes.
"The delay in these monies being paid has had a material impact
on the group... and has led the board to conclude that there is a
material uncertainty in relation to the going concern of the group
in the near term, linked to the non-recovery of these funds in line
with the contractual obligations."
It added that the company has received funding support from some
of its directors and is looking at capital raising options.
Shares at 1010 GMT were down 9.50 pence, or 20%, at 38.50 pence
having fallen to a low of 35.52 pence earlier in the session.
Abingdon added that it made a pretax loss of GBP7 million for
the fiscal year ended June 30 compared with a loss of GBP3.4
million a year prior.
Revenue more than doubled to GBP11.6 million from GBP5.2
million.
The company's adjusted earning before interest, taxes,
depreciation, and amortization--a metric that strips out
exceptional and other one-off items--swung to a loss of GBP3.3
million compared with a profit of 844,000 the year prior.
Write to Michael Susin at michael.susin@wsj.com
(END) Dow Jones Newswires
November 18, 2021 05:45 ET (10:45 GMT)
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